The Classification of a Cost as Either Direct or Indirect

question 25

Multiple Choice

The classification of a cost as either direct or indirect depends primarily on:

• A)the computer tracing system within the organisation.
• B)the definition of the cost object.
• C)the knowledge of the accountant.
• D)the type of business.

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Definitions:

Past Disposal Sites

Locations that have been used for the disposal of waste materials in the past, which may be subject to environmental cleanup or regulation.

Federal Insecticide, Fungicide, and Rodenticide Act

A United States federal law that sets up the basic framework for pesticide regulation to protect applicators, consumers, and the environment.

Agricultural Chemicals

Chemical products used in agriculture, such as pesticides, herbicides, and fertilizers, to manage crops and livestock.

Innocent Landowner Defense

A legal principle that allows property owners to avoid liability for contamination found on their property if they did not cause or contribute to the contamination.